Hongchang Electronics' Annual Output of 80,000 Tons of Electronic-Grade Functional Epoxy Resin Project Starts

On November 20, the Zhuhai Hongchang electronic-grade functional epoxy resin plant construction project with an annual output of 80,000 tons started. The project was constructed by China National Chemical No. 14 Chemical Construction Fifth Engineering Company. It is reported that this project is the third phase of Zhuhai epoxy resin project of Hongchang Electronics. The total construction area of the project is 17748.26 square meters. The main construction content is: including the civil structure of the entire plant, construction, water supply and drainage fire protection, buried pipes for instrumentation and electricity, indoor weak lightning protection grounding, general underground pipes and HVAC.

Hongchang Electronics plans to have three new factories in Zhuhai, namely:

1. The second phase project of Zhuhai Hongchang Electronic Materials Co., Ltd. has a total investment of 779 million yuan. The project plans to expand the production capacity of liquid epoxy resin products by adding new production equipment, building a new factory building on 80 acres of factory land, and building a liquid epoxy resin production line with an annual output of 140,000 tons to meet market demand in electronic and electrical fields. After the project reaches full production, it is expected to achieve annual operating income of 3.08 billion yuan and annual net profit of 170 million yuan. The second phase of the project is under construction and was started in April 2023 and will be completed in April 2025.

2. The total investment of the third phase of Zhuhai Hongchang Electronic Materials Co., Ltd.'s 80,000-ton annual electronic-grade functional epoxy resin project is 420 million yuan, and the construction period of the project is 24 months with a factory area of 80 acres. After the project reaches full capacity, it is expected to achieve annual operating income of 2.1 billion yuan and annual net profit of 130 million yuan. The main products are brominated epoxy resin, solid epoxy resin and solvent-based epoxy resin.

3. The total investment in the functional high-end copper-clad laminate electronic materials construction project is 500 million yuan, the factory area is 80 acres, and the construction period is 24 months. After the project reaches full capacity, it can achieve an annual output of 7.2 million high-end copper-clad laminates and 14.4 million meters of prepreg. It is expected to achieve annual operating income of 986 million yuan and annual net profit of 78.71 million yuan.

It has invested approximately 1.7 billion yuan to build three new factories in Zhuhai, covering a total area of 240 acres. In addition to the original 100 acres of industrial land of Zhuhai Hongchang Electronics, plus the 100 acres of industrial land of its subsidiary Wuxi Hongren, the total 440 acres of land are valuable. , Hongchang Electronics, located in the Guangdong-Hong Kong-Macao Greater Bay Area, will make a new leap in future growth, and its development future is bright.

In the first half of the year, Hongchang Electronics' epoxy resin production and sales were 47,200 tons and 47,000 tons respectively, and increased by 7.01% and 7.28% respectively compared with the same period last year, and its operating income was 702 million yuan. However, the selling price of epoxy resin products has dropped significantly. In the first half of 2023, the average sales price of Hongchang Electronics epoxy resin was 14,984.85 yuan/ton, a decrease of 42.43% from 26,027.34 yuan in the same period last year.